Ask Question
BusinessBusiness
24 December, 23:32

Global Corporation distributed property with an $246,000 fair market value and a $135,300 adjusted basis to one of its shareholders. The property was subject to a $74,415 mortgage, which the shareholder assumed. Global has ample E

+5
Answers (1)
  1. 25 December, 01:29
    0
    The shareholder's dividend income = fair market value - mortgage value = $246,000 - $74,415 = $171,585

    The shareholder's basis in the property received = fair market value = $246,000

    Explanation:

    Even though Global has enough earnings and profits to distribute dividends (it cannot distribute dividends if it didn't make a profit or doesn't have retained earnings), it might not have enough cash available to do so. This way the company is fulfilling its obligations with its shareholder while not using its cash reserves.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Global Corporation distributed property with an $246,000 fair market value and a $135,300 adjusted basis to one of its shareholders. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A firm issues a bond today with a face value of $1,000, a 6.25% coupon rate, annual coupon payments, and a term of 15 years. An investor purchases the bond for $1,249. What is the yield to maturity?
Answers (1)
General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards.
Answers (1)
Define fiscal policy. Determine whether each of the following, other Factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demand: a.
Answers (1)
Me Online, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000.
Answers (1)
How do the changes with age of the prevalence rates for externalizing and internalizing disorders compare?
Answers (1)
New Questions in Business
Bruno's stock should return 14 percent in a boom, 11 percent in a normal economy, and 4 percent in a recession. The probabilities of a boom, normal economy, and recession are 8 percent, 90 percent, and 2 percent, respectively.
Answers (1)
Employee engagement refers to being psychologically involved in, connected to, and committed to getting one's job done. Engaged employees often will do their jobs as if they own the company. A. TrueB. False
Answers (1)
Jesse is thinking about buying an entertainment system that will cost $1,800. The store will finance the purchase for 12 months at 20 percent interest. His payments will be $166.74. How much will he pay in interest over the life of the loan?
Answers (1)
Which strategy for merging two distinct cultures is most appropriate when the two merging companies are in unrelated industries or operate in different countries because the most appropriate cultural values tend to differ by industry and national
Answers (1)
What is the safest way to dispose of old bank account statements?
Answers (1)
Home » Business » Global Corporation distributed property with an $246,000 fair market value and a $135,300 adjusted basis to one of its shareholders. The property was subject to a $74,415 mortgage, which the shareholder assumed. Global has ample E
Sign Up Forgot Password?